Crypto Market Volatility

In September, South Korea’s money supply grew by 7.2%, an increase from 6.8%. This suggests a positive shift in the country’s economic indicators. In currency news, GBP/USD is facing difficulties due to the Bank of England’s policies. Meanwhile, EUR/JPY has hit 179.00, reaching its highest level since August 1992. Bitcoin’s value has fallen to $103,000, leading to losses for cryptocurrencies like Zcash, Filecoin, and Uniswap. However, Bitcoin Cash continues to rise, gaining 1%. Regulatory updates show that the European Central Bank is maintaining stability, keeping EUR/USD around 1.1580. In the UK, the labor market is weakening, with payroll numbers down and unemployment on the rise. FXStreet advises caution when investing because of potential risks. This information is for guidance only and does not guarantee protection against errors or financial losses.

Investment Market Guidance

FXStreet stresses the importance of thorough research before making investment choices. They do not offer personalized financial advice and encourage individual analysis. South Korea is seeing its M2 money supply grow to 7.2% as of September 2025, a noticeable rise from last month. This increase suggests a more flexible approach from the Bank of Korea, which may lead to inflation later. Traders in derivatives should note that this trend might weaken the Korean Won, making it worthwhile to bet on a higher USD/KRW exchange rate in the upcoming weeks. The market is eagerly awaiting a rate cut from the U.S. Federal Reserve, a sentiment that has been growing recently. Current data from the CME Group shows an over 85% chance of a rate cut in the first quarter of 2026, influencing today’s decisions. A more relaxed Fed policy could weaken the U.S. Dollar, suggesting we prepare for the dollar to remain weak against currencies with stricter central bank policies. In the United Kingdom, the labor market data from the third quarter of 2025 is concerning, contributing to a negative outlook for the Pound Sterling. The unemployment rate has risen to 4.9%, pushing the Bank of England towards a possible rate cut in December. We may want to consider buying put options on the GBP/USD pair to profit from this expected weakness. The ease of the dollar provides strong support for gold, which is now approaching the $4,150 level. This situation resembles the rally in 2020 when gold first surpassed $2,000 an ounce, coinciding with extensive central bank easing. Buying call options on gold futures could be a smart move as we anticipate more upside with the Fed leaning toward rate cuts. The Euro remains steady around 1.1580 against the dollar due to the European Central Bank’s cautious policy. This differs sharply from the dovish outlook from the Fed and the Bank of England. This policy difference makes long EUR/GBP positions, whether through futures or options, an attractive trade based on the strength of the central banks. The crypto market is under pressure, with Bitcoin’s recent drop to $103,000 affecting major altcoins as well. The substantial losses in various altcoins indicate a retreat from risk in the digital asset market. Caution is advised, and using options to hedge crypto positions against further declines in the near future may be wise. Create your live VT Markets account and start trading now.

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